Like many states, Maryland is experiencing a major housing crisis. Due to supply shortages and the state’s failure to lower regulatory burdens on builders, a majority of renters say they are cost-burdened with housing-related expenses. Further, the state is short 96,000 housing units. Over the past 10 years, the state has underproduced housing at 5,600 units per year on average.
 

Many cannot afford to live in Maryland, despite its desirable proximity to major metropolitan areas, esteemed institutions, and robust economic activity. Maryland ranks as among the toughest states in the nation for renters who depend on affordable housing.
 

Governor Wes Moore has finally started to recognize the state’s shortfalls. Last spring, Gov. Moore took steps in the right direction with an initiative that “incentivizes the construction of new housing by removing barriers to development that have contributed to the current supply shortage.”
 

It’s welcome progress but more must be done to address the challenge. It takes too long to permit new housing construction and local governments often tie the hands of developers that will help solve the problem. Ironically, government policies like rent control are keeping prices high in counties across our state, particularly in high-cost areas like Montgomery and Prince George’s Counties. Let’s get government out of the way if we want lower housing costs.
 

Unfortunately, other leaders are backpedaling. Attorney General Anthony G. Brown’s latest lawsuit alleges that property managers use rental software like RealPage to collude and illegally raise rent prices throughout the state. Although appearing consumer-friendly, the newest suit demonstrates a fundamental misunderstanding of rental software and Maryland’s economic landscape.
 

Rental software only tells us the story of supply and demand, fundamental laws that say if the supply of goods or services outpaces demand, then prices will fall. The answer to Maryland’s housing crisis lies in the construction of more homes, which can be accomplished by rethinking housing planning requirements, zoning, and pushing initiatives that will help builders build more homes.  This is supply and demand economics 101 – so if we sincerely want to lower housing prices, it’s essential that we build a greater supply of apartment units.
 

The fight against AI tools unfortunately ignores the big picture: AI is an advantageous tool that can provide valuable insights into current market conditions. It can be used by both property owners and homeowners for price discovery, demystifying the renting process, and quickly driving down costs based on market turns. Many homeowners may not understand the market without the valuable insights AI brings. 
 

Maryland is also considered a tech hub. Deemed “The Cyber Capital of America” by former Governor Hogan, Maryland is known for its rich talent ecosystem and proximity to tech opportunities in both the private and public sectors. The tech industry also boosts Maryland’s economy, contributing $37.8 billion, or 8.9%, to the state’s economy. However, the ban on helpful AI tools only serves to undercut Maryland’s reputation as a tech leader with vast opportunities in the AI space.
 

Regrettably, the lawsuit is an apparent offshoot of housing policy maneuvers made in the waning days of the Biden administration. These actions effectively sidestep the United States’ bigger problem of a housing shortage that is somewhere between 4 and 7 million homes.
 

Instead of duplicating the Biden-era blame game, Maryland’s Attorney General should consider the impact of robust homebuilding. In Minnesota, Minneapolis eliminated single-family exclusive zoning, while incentivizing the building of more homes, driving down costs. In a roughly five-year period (2019-2024), rents in Minneapolis fell by 4%. By contrast, rents across the country surged by 22% in the same five-year period – further proof that when you increase supply to meet demand, prices will fall.
 

Various cities across the nation have also decided to cut red tape and convert unused office spaces into housing. Close to home, the District of Columbia has led the nation in these efforts, creating 5,820 new housing units from office properties from 2021 to 2024. However, Maryland has yet to follow its lead and significantly pursue adaptive reuse.
 

In a poll, 86 percent of Maryland adults agreed that policymakers should consider the impacts of new laws and regulations on housing affordability. Maryland’s Attorney General is misguided in his solution to the state’s housing crisis. Instead of needlessly attacking rental software, which can provide valuable market insights, local lawmakers should be prioritizing increasing the supply of homes. The continuation of Maryland’s legacy as a cyber capital and land of vast economic opportunity starts with the cutting of red tape and a construction-first approach to housing. 
 

Christopher B. Summers (csummers@mdpolicy.org) is president and chief executive officer of the Maryland Public Policy Institute.